( ) Page: 1/14 REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 OF THE TRIPS AGREEMENT NEW ZEALAND. Addendum
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1 2 October 2017 ( ) Page: 1/14 Council for Trade-Related Aspects of Intellectual Property Rights Original: English REPORT ON THE IMPLEMENTATION OF ARTICLE 66.2 OF THE TRIPS AGREEMENT NEW ZEALAND Addendum The following communication, dated 22 September 2017, from the delegation of New Zealand, is being circulated pursuant to paragraph 1 of the Decision on Implementation of Article 66.2 of the TRIPS Agreement (IP/C/28). 1. This submission provides an updated report on New Zealand's activities in pursuit of commitments under Article 66.2 of the TRIPS Agreement concerning technology transfer to least developed countries (LDCs) for the period July June 2017 and actions planned. 2. Article 66.2 of the TRIPS Agreement provides that "developed country Members shall provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to least developed country Members in order to enable them to create a sound and viable technological base". 3. Technology transfer is interpreted in this report broadly to include training, education and "know-how", along with any capital component. We see four key modes of technology transfer: i) physical objects or equipment; ii) skills and human aspects of technology management and learning; iii) designs and blueprints which constitute the document-embodied knowledge on information and technology; and iv) production arrangement linkages within which technology is operated. 4. We appreciate that LDC Members have an interest in learning more about the outcomes and operation of Members' technology transfer programmes. As an annex to this report we have included a table of specific examples of technology transfer to LDCs. The table is in response to comments by LDCs wanting the adoption of a more standardised format of reporting. 1 OVERVIEW OF INCENTIVES, TYPES OF TECHNOLOGY AND THE MODES OF TECHNOLOGY TRANSFER 5. New Zealand's efforts to encourage technology transfer to LDCs occur through a variety of channels: promoting a broad economic environment that is conducive to the development of New Zealand enterprises and institutions and enables them to transfer technology abroad; encouraging trade in goods, services and labour mobility; facilitating a strong intellectual property environment; as well as through New Zealand's bilateral and regional development programmes. Though New Zealand recognises that the most relevant and cost-effective technologies may come from other countries (consistent with untied aid). 6. A key channel for promoting technology transfer from New Zealand to LDCs is through the New Zealand Aid Programme, managed by the Ministry of Foreign Affairs and Trade (MFAT). MFAT views technology transfer as a fundamental element in achieving its overall objective of investing
2 - 2 - money, knowledge and skills to deliver sustainable development and poverty reduction in developing countries. 7. Due to New Zealand's history, culture and location, the primary geographical focus of the New Zealand Aid Programme is the Pacific and key partners in Asia. The LDCs with which New Zealand has bilateral or targeted regional programmes are: Solomon Islands, Vanuatu, Cambodia, Laos, Myanmar and Afghanistan (all of whom are LDC WTO Members or Observers), and Ethiopia, Kiribati, Tuvalu, and Timor Leste (non-wto Member activities are not the focus of this report). 8. The New Zealand Aid Programme has 12 investment priorities that reflect key development opportunities in our partner countries and draw on New Zealand's strengths. These include two flagship priorities renewable energy and agriculture where New Zealand can offer specialist expertise. The other priorities including key productive sectors (fisheries and tourism), enabling infrastructure (ICT connectivity and transport), human development (health and education), along with economic governance, trade and labour mobility, law and justice and humanitarian response. 9. The New Zealand Aid Programme's bilateral and regional programmes provide technology transfer through training, skill development, and technology infrastructure. This report offers a series of illustrative examples of bilateral and regional development activities that result in a transfer of technology to LDCs. The information provided is based on the reporting criteria agreed by the TRIPS Council in February Any relevant activities of multilateral agencies that New Zealand provides core funding to are not reflected in this report. All figures quoted are in New Zealand dollars. 2 ODA ACTIVITIES PROVIDING TECHNOLOGY TRANSFER TO LDCS 2.1 EXAMPLES OF BILATERAL PROGRAMMES WITH LDCs 11. As the New Zealand Aid Programme evolves over time, different elements of technology transfer will feature. The following are some current examples from bilateral programmes with a number of LDC WTO Member Countries Solomon Islands 12. New Zealand is supporting Caritas Aotearoa New Zealand through the contestable Partnerships Fund to deliver a pilot project to install, test and adapt a new hybrid wind-solar system to provide power for isolated communities and facilities. While individual components of this system already exist, the pilot will integrate them into a hybrid system and develop the communications and supervisory software needed to address major social and technical issues that have led other similar initiatives to fail due to insufficient support and maintenance. The total value of the innovation is NZD$100,000 (MFAT funding: $90,000; Caritas funding: $10,000). Caritas is partnering with New Zealand organisation Powerhouse Wind Limited to deliver the pilot. Installation of the technology commenced in 2017 at the Bishop Koete Rural Training Centre on Ngela Island Vanuatu 13. New Zealand, the Government of Vanuatu and the World Bank have partnered on the Vanuatu Rural Electrification Project to deliver affordable renewable energy to people in rural areas. New Zealand committed $6m over 6 years ( ) through the Pacific Regional Infrastructure Facility for Phase One to subsidise low-maintenance solar photovoltaic 'plug and play' systems for approximately 17,500 households, in addition to 230 health posts and 2,000 not-for-profit community halls. To date 900 households (4,500 people) and 50 community facilities have been electrified across 30 islands. In 2017 New Zealand committed $7m to the Phase Two scale-up that will provide five mini-grids for five off-grid communities reaching 8,950 households (approx. 44,750 people) by 2021, acting as important pilots for future mini-grid developments in Vanuatu. 14. New Zealand contributed over NZ$2m to the tourism sector in Vanuatu during 2016/17 which helped to develop the first Pacific country Agritourism Strategy and plan of action (VAPA) for local agricultural produce to enter the high end hospitality sector; and completed an urban/rural
3 - 3 - business enterprise survey which identified 18 businesses who received training/mentoring to improve operational standards to meet industry accreditation. 15. In 2016/17, New Zealand provided over $3m towards basic education support, which includes the provision of infrastructure and textbooks, teacher training, integrated curriculum development, information management systems, school leadership and management activities. This is part of a 14m programme over 4 years, in partnership with the Australian Department of Foreign Affairs and Trade, known as the Vanuatu Education Support Programme, or VESP. VESP has a number of goals, including improving the quality of school facilities to accommodate the increasing number of students, and improving overall literacy and numeracy rates over the medium term. 16. New Zealand continues to work with the Department of Water Resources UNICEF to improve sector coordination and enhanced capacity and with their preferred suppliers to deliver coordinated potable water supply services. In 2016 these activities reached 18 schools and numerous communities across four Provinces who gained improved health benefits from improved access to fresh water (reaching 9,400 people) and sanitation (6,350 people) Afghanistan 17. New Zealand is building capacity in Afghanistan for ongoing operation of a New Zealand funded renewable energy system gifted to the Afghan Government in mid The Renewable Energy Programme (REP) is a 6 year, $25m activity supporting economic development in the Bamyan province through the electrification of Bamyan town. The REP Capability Building and Technical Support Programme (CBP) is providing support to Afghanistan's energy utility company with the aim of ensuring long-term operation of the 1MW system (four modular PV systems) and distribution network for 2,490 connections. The project aims to increase commercial activity; improve functioning of provincial and district governments; and improve quality of life through better access to lighting, modern communication and computer technology. 18. New Zealand's Agricultural Support Programme II in Afghanistan is a four year, $3.5m activity that provides training and mentoring to agricultural cooperatives and small businesses in Yakawlang and Panjab District to improve practices in beekeeping and honey production. Extension Officers (EOs) also conducted 817 individual farm visits (629 ASP farmers/ 188 non-asp farmers), undertaking monitoring of winter wheat sowing and providing on-site advice to farmers. The project has contributed to higher honey production volumes and increased commercial income among small agricultural businesses Myanmar 19. New Zealand invests in a five year, $12m Rakhine Winter Crops Project to improve farm incomes, water management and crop diversification, specifically in relation to winter crops in Myanmar's Rakhine State. 20. New Zealand is also supporting the Myanmar Dairy Excellence Project, which is a five year, $6.0m project to improve Myanmar's dairy industry. The project, which is now in Phase 2, seeks to improve the quality and quantity of milk produced in three regions by introducing new types of forage and pasture management, animal and farm management techniques, and protocols for the safe and hygienic collection, transportation and processing of milk and milk products. The project has included visits by farmers and Ministry of Agriculture, Livestock and Irrigation officials to New Zealand to study farming and cheese-making practices, and includes input from a range on New Zealand organisations. 2.2 EXAMPLES FROM REGIONAL PROGRAMMES 21. New Zealand provides LDCs with technology transfer and assistance to encourage investment through various regional assistance programmes. In some cases it is difficult to separate expenditure specifically provided to LDC Members, although it is clear that LDC Members within these regions benefit from these programmes.
4 Pacific Economic and Trade-related Activities 22. Sound economic management and appropriate policies (e.g. ICT regulation) are critical to encourage technology transfer, trade and investment. The New Zealand Aid Programme provides funding to various regional organisations that provide economic advice, capacity building, or support the development of trade or investment: The Pacific Islands Financial Technical Assistance Centre (PFTAC) supports Pacific Island Countries to improve economic management through the provision of technical advice and practical support in public financial management, banking regulation, tax administration, macroeconomic management and National Accounts, and in coordinating donor efforts in these areas. New Zealand has committed $12m for the current 5 year cycle of PFTAC through to June 2020; The Pacific Islands Trade & Invest (PITI) office in Auckland aims to enhance trade, investment and tourism opportunities for Pacific Island businesses. New Zealand contributes NZ$900,000 per year to the operation of PITI. 23. The New Zealand Aid Programme supports the development and utilisation of quality trade statistics in the Pacific through funding PC Trade. PC Trade is a computer based software system designed by Statistics New Zealand that provides Pacific Island Countries, including several LDCs with a customised, fit for purpose system for collecting trade data and producing trade reports. The system supports a variety of functions including processing customs declarations and manifests, managing levies, tariffs and excise duties, applying selected higher level World Customs Organisation codes, and retaining a record of transactions at the border. From this data, simple reports can be generated that are then used to evaluate economic progress and inform decision making. In-country training and a help desk support service is also provided as part of this programme Pacific Environmental Activities 24. The New Zealand Ministry of Foreign Affairs and Trade provides financial support to the Secretariat of the Pacific Regional Environment Programme (SPREP) ($4.6m over three years ). SPREP in turn provides technical advice, programme support and capacity building assistance to Pacific island countries and territories in the areas of biodiversity and ecosystem management, climate change, ocean acidification, waste management and pollution control, and environmental monitoring and governance, and accordingly promotes the transfer of knowledge into the region Recognised Seasonal Employer (RSE) Scheme 25. The Recognised Seasonal Employer (RSE) scheme enables New Zealand employers in the horticulture and viticulture industries to recruit migrant seasonal workers, primarily from the Pacific. The purpose of the scheme is to provide New Zealand employers with a reliable source of seasonal labour and to provide Pacific workers with income and employment opportunities. While RSE workers are in New Zealand they also have the opportunity to up-skill and undertake a variety of training courses. 26. Since 2007, more than 75,000 seasonal work visas have been issued under the scheme. Of that, over 34,000 RSE visas have been issued to workers from LDCs in the Pacific (Kiribati, Solomon Islands, Tuvalu and Vanuatu). 27. The New Zealand Aid Programme provides significant financial support to facilitate the scheme, including: A training programme for RSE workers in literacy, computer skills, basic financial management, and basic trades. The programme has provided training to over 6,000 workers over four years ( ). Technical assistance delivered by the New Zealand Ministry of Business, Innovation and Employment to build the capacity of Pacific governments to recruit and manage
5 - 5 - the supply of labour for New Zealand's horticulture and viticulture industries under the scheme. 2.3 EXAMPLES FROM GLOBAL PROGRAMMES Partnerships for International Development Fund 28. The New Zealand Partnerships for International Development contestable fund was established in 2012 to harness the expertise and innovation of New Zealand charitable, other notfor-profit, private sector and state sector organisations in the delivery of aid activities in developing countries, with a particular focus on sustainable economic development. Up to $30m worth of commitments are made each year towards partnerships between New Zealand organisations and local in-country partners delivering development activities. Three examples of activities selected for design and implementation under these funds that include key modes of technology transfer are: Developing a Pacific Risk Tool for Resilience with Vanuatu and Samoa to enable the gathering, analysis and application of existing and future disaster risk information in order to reduce the impact of future hazard events and to protect socio-economic development. Strengthening the quality and relevance of technical and agricultural training in Solomon Islands, by utilising a range of New Zealand expertise to improve quality, management and governance at eight Rural Training Centres (RTCs). It includes up-skilling instructors and administrators, and improving key infrastructure. Providing support for water conservation, soil management and sustainable forest management techniques in Myanmar to help reverse environmental degradation and enable farmers to increase and improve production and diversify incomes. This is supported by value chain analysis, collective marketing approaches and optimised postharvest processing methods and materials New Zealand Scholarships 29. The New Zealand Aid Programme provides scholarships to citizens of targeted developing and least developed countries to undertake vocational training or tertiary level study in New Zealand, the Pacific region or in South East Asia. During 2016/17 approximately 1944 students from developing and least developed countries were studying on New Zealand Aid Programme funded scholarships, with funding totalling $68.9m. A total of approximately $17.4m was allocated for scholarships for students from WTO member LDCs in 2016/17. An additional $7.8m was allocated for scholarships for students from non-wto member LDCs (Ethiopia, Kiribati, Timor Leste, and Tuvalu). 30. The scholarships enhance the skills, training and knowledge of the recipients so that they can assist in the social and economic development of their home countries. Scholarships are offered only for training and qualifications in subjects and skills which are relevant to the identified human resource development needs and priorities of each country. 3 OTHER NEW ZEALAND PROGRAMMES WITH A TECHNOLOGY TRANSFER COMPONENT 3.1 Intellectual Property 31. The Intellectual Property Office of New Zealand (IPONZ) provides on-going technical assistance, on request, to help developing and least developed countries on issues relating to the registration of intellectual property rights, including plant variety rights (see Article 67 Report). IPONZ is recognised for its efficient and effective online services, high quality examination and registration processes. As a result IPONZ hosts delegations and study visits to provide practical training and share knowledge. 32. This year IPONZ hosted a delegate from the Samoan Ministry of Commerce, Industry and Labour with an interest in building capability and knowledge about online systems. IPONZ provided
6 - 6 - information and training on its 100% online model for examining, registering and managing intellectual property rights. 33. IPONZ also hosted a delegation from the Intellectual Property Office of Vietnam. 34. An IPONZ representative from its Plant Variety Rights Office was a guest tutor for the International Union for the Protection of New Varieties of Plants (UPOV) distance learning programme, with students from East and South East Asian states. 35. The same expert delivered a series of lectures as part of a training programme organised by the Korean International Cooperation Agency and the Korean Seeds Variety Services. Participating students were from Peru, Costa Rica, Guatemala, Philippines, Ghana and Sudan. The office also hosted a delegation from the Korean Seed and Variety Service. 36. AANZFTA has an intellectual property committee, where parties exchange information on intellectual property issues and coordinate capacity building and technical assistance programmes within the region. This year New Zealand co-chaired the AANZFTA Intellectual Property Committee meeting in Indonesia and attended a leads-level meeting of the Intellectual Property Committee. 3.2 AANZFTA Economic Cooperation Support Programme 37. The Agreement establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) mandates a programme of technical assistance activities known as the AANZFTA Economic Cooperation Support Programme (AECSP). The AECSP is jointly funded by Australia and New Zealand. Between 2010 and 2015, it had an overall budget of AUD$20 to $25 million. As of July 2017, 71 projects had been initiated across the eight different components of the economic cooperation work programme, with 48 being completed as of July Projects funded by the AECSP are available to all ten ASEAN member states, including three LDCs: Cambodia, Lao PDR and Myanmar. The aim of the AECSP is to facilitate AANZFTA implementation; progress built-in agenda negotiations; achieve deeper economic integration among the parties; and increase business utilisation of AANZFTA. 39. In 2017 New Zealand recommitted to funding this programme until 31 December During the period July 2016 June 2017, numerous AECSP projects promoted technology transfer, particularly the transfer of skills and human aspects of technology management and learning. Some examples of projects involving Cambodia, Lao PDR and Myanmar include: Training programmes on the transposition of AANZFTA Tariff Reduction Schedules and Rules of Origin Product Specific Rules from 2012 version of the Harmonized System to HS In 2017 assistance was provided to develop national work plans. The Regional Patent Examination Training (RPET) entered its third and final stage in 2017, focused on examination practice. The key objective of RPET is to build the patent examination capabilities of Intellectual Property offices to conduct search and examination to the standards of the Patent Cooperation Treaty (PCT). OECD Investment Policy Reviews for Cambodia, Lao PDR and Myanmar (ongoing). The hosting of the 7th Annual Competition Conference, focused on the theme of "Managing Change in a competitive ASEAN". Phase 3 of the "Accession to the Madrid Protocol Project". The secondment of officials from Myanmar and Cambodia to the New Zealand Commerce Commission under the Competition Law Implementation Programme.
7 - 7 - ANNEX 1 The following chart presents some examples of activities undertaken by the New Zealand Aid Programme. It is not an exhaustive list of activities but rather serves to provide examples of the institutions and enterprises that transfer physical capital and goods, know-how, information, and data to LDCs. This chart has been developed to show certain criteria as requested by LDCs at the October 2011 Workshop on Article NEW ZEALAND: EXAMPLES OF TECHNOLOGY TRANSFER PROGRAMMES AND PROJECTS NZ BILATERAL PROGRAMMES: Solomon Islands Title of project/programme Wind-solar renewable energy in Solomon Type of technology transferred To develop a complete wind-solar hybrid energy system that is suitable for isolated communities and facilities Solomon Islands Association of Rural and Vocational Training Centres Caritas; Powerhouse Wind; Adakun Development Trust Solomon Islands Infrastructure; training Renewable energy Energy infrastructure Expected output related to tech transfer Installation of one turbine at one reginal training centre benefitting 170 students and staff Budget or funds allocated (NZD$) Duration 2016/17 Cost savings for regional training centres; potential income for regional training centres from marketing their new skills; scale-up opportunities NZ$90k (for pilot) Ongoing New Zealand Ministry of Foreign Affairs and Trade (MFAT) 1 In English only.
8 - 8 - NZ BILATERAL PROGRAMMES: Vanuatu Title of project/programme Vanuatu Rural Electrification Project (VREP Phase I) Type of technology transferred Expected output related to tech transfer To deliver affordable renewable energy to people in rural areas Department of Energy, Ministry of Climate Change Meteorology and Energy. Pacific Regional Infrastructure Facility, World Bank Vanuatu Budget or funds allocated (NZD$) $6m Subsidies, technical assistance Renewable energy Duration Low maintenance solar photovoltaic 'plug and play' systems, technical assistance to prepare Environmental Code of Practice and operations manuals New solar 'plug and play' systems for 17,500 households, 230 health posts and 2,000 not-for profit community halls in rural areas Increased access to affordable renewable energy in rural areas Project on-going New Zealand Ministry of Foreign Affairs and Trade (MFAT)
9 - 9 - Title of project/programme Vanuatu Water and Sanitation Type of technology transferred Expected output related to tech transfer To improve the water and sanitation infrastructure in Vanuatu Department of Geology, Mines and Water UNICEF Vanuatu Budget or funds allocated (NZD$) $5m Duration Technical assistance and capability building Water and Sanitation, Information Management Mobile data collection platform for water source mapping (Akvo Flow). The provision of technical assistance and capability building Information management systems established to support prioritisation and development of water and sanitation. Technical assistance in the Department of Geology, Mines and Water. Vanuatu's water and sanitation strengthened through more effective information management systems and technical assistance Project on-going New Zealand Ministry of Foreign Affairs and Trade (MFAT)
10 NZ BILATERAL PROGRAMMES: Afghanistan Title of project/programme Type of technology transferred Expected output related to tech transfer Afghanistan Renewable Energy Programme Capability Building and Technical Support Programme To promote opportunities for economic development in Bamyan province through the long-tern electrification of Bamyan Town. Afghan government (district and provincial), businesses, people living and working in Bamyan town. New Zealand companies Afghanistan Infrastructure; capability building through technical assistance. Energy Infrastructure; Capability building through technical assistance. Ongoing operation of the New Zealand constructed 1MW system (4 modular PV systems) and distribution network through capability building of the local energy utility company responsible for operating, maintaining and managing the system. Increased commercial activity for businesses. Improved functioning of provincial and district government. Improved quality of home life, including the benefits of lighting, modern communication and computer technology. Budget or funds allocated (NZD$) $25m Duration Project on-going New Zealand Ministry of Foreign Affairs and Trade (MFAT)
11 NZ REGIONAL PROGRAMMES: Pacific Title of project/programme Pacific Financial Technical Assistance Centre (PFTAC) Improved economic management leading to sustainable economic growth across the Pacific Islands Government departments including Treasury, Revenue and Customs PFTAC Pacific Regional (including Timor-Leste) Capacity building through technical assistance and training. Public Financial Management Revenue policy and administration Economic statistics Financial sector supervision Macro-economic management Type of technology transferred The provision of technical advice and practical support in public financial management, banking regulation, tax administration, macroeconomic management and National Accounts, and in coordinating donor efforts in these areas. Expected output related to tech transfer Technical advice and capacity building delivered through advisory missions. On-demand remote advice ( , phone) Manuals & guidance notes on key issues. Regional and sub-regional training courses and seminars Budget or funds allocated (NZD$) $12m Duration Improved economic management in the Pacific region through the provision of technical advice and capacity building to Pacific Island countries, in key areas of public sector financial management. Project on-going
12 Title of project/programme Type of technology transferred Expected output related to tech transfer PC Trade Programme Supporting production of trade statistics by PICs Pacific Customs Departments and Pacific National Statistics Offices Statistics New Zealand Tuvalu, Kiribati Capability building through technical assistance Production and utilisation of trade statistics Trade statistics database, The provision of technical assistance and capability building Design and installation of New Zealand-designed customs database and software replacement Technical assistance and training for helpdesk services Budget or funds allocated (NZD$) Improved quality and timeliness of trade statistics in Pacific will support better planning, decision-making, and evidence-based policy making. It will also provide a stronger evidence base to track effective aid and development results. $140k p.a. Duration Project on-going International and Business Performance Statistics, Statistics New Zealand
13 Title of project/programme Recognised Seasonal Employer Scheme Strengthening Pacific Partnerships Increased economic benefits from labour mobility in the Pacific Government Departments, community leaders and Pacific groups New Zealand Ministry of Business, Innovation and Employment Solomon Islands, Vanuatu, Kiribati, Tuvalu Capacity building through technical assistance and training. Information management; processes; communication and marketing; horticulture Type of technology transferred The provision of training and technical advice in information management, processes, knowledge, communication and marketing. Expected output related to tech transfer Budget or funds allocated (NZD$) Duration Training, workshops and secondments to New Zealand for Government representatives, community leaders and groups. The focus will be on information management, processes, knowledge, communication and marketing Improvement in the management and coordination of labour mobility initiatives and improved horticulture skills and practices. $6.4m in total for Pacific Island countries Project on-going
14 Title of project/programme Type of technology transferred Expected output related to tech transfer Recognised Seasonal Employer Worker Training Programme Increased economic benefits from labour mobility in the Pacific Pacific seasonal workers employed in New Zealand Private sector training provider Solomon Islands, Vanuatu, Kiribati, Tuvalu NZ-based work experience and training programme Horticulture, and viticulture work experience; training in literacy, English language, finance, ICT, basic trades Training and knowledge building. 20-hours course time per worker per season. Budget or funds allocated (NZD$) Duration Improved workplace skills and confidence, increased remittances to the Pacific. $5m in total for Pacific Island countries Project on-going
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